The Internet offers users access to purchase a wide range of services and products. Some of the services available include Internet Access, news or investment service subscriptions, sports, gaming sites, downloads of data/information, e.g., music, etc. Numerous products are available from a wide range of sources including manufacturer sites, retailer sites, discount or surplus supplier sites, auction sites, individuals, etc. In addition, many bills can now be paid directly over the Internet.
Typically, using currently employed known methods, a user pays for an Internet service or product using a credit card, check, or bank withdrawal over the Internet. Consumers without these capabilities must make other arrangements for payment and then track charges to meet any spending limits. Such other arrangements may include pre-paying a fixed amount, e.g., via a money order through the mail to a specific Internet service provider or sending a money order to a retailer through the mail after selection of a product. Such arrangements are inconvenient for the consumer and may result in significant delays between the selection of a service or product over the Internet and the consumer's access to a service or delivery of a product.
In cases where the user has the capability and chooses to pay via the Internet, the user's financial information, e.g., credit card number, PIN (personal identification number), verification information, etc. and/or personal information, e.g., name, address, social security number, date of birth, mother's maiden name, etc. is generally conveyed over the Internet. Consumers having concern for the safety of their personal and/or financial information may be reluctant to make purchases for services and products over the Internet. In addition, the user's personal and/or financial information may be stored on the computer inputting the payment request. Safety concerns may arise in a variety of areas. An individual's personal computer, with an imperfect firewall, may be subject to security breaches from hackers which may result in identity theft. An individual may be inputting the request from a personal computer site of questionable security, e.g., an internet café, a public library, a hotel's courtesy PC. Consumers may have concerns about supplying financial and/or personal information to entities and/or individuals that are not well-known, trusted, and/or established. Consumers may fear that significant unauthorized charges may occur on their credit card or account by one of these unknown entities. Concerns may also arise about supplying financial and/or personal information to Internet sites in remote locations, e.g., foreign countries.
These concerns may cause a potential consumer to pause and bypass the purchase of an Internet service or product, because it may seem that the security risk outweighs the benefit from the purchase. This may be particularly the case for relatively minor purchases. For this reason, in some cases, service providers may tend to offer services on a subscription basis, e.g., a yearly Internet subscription to a newspaper or magazine, and not offer the purchase of an individual issue over the Internet. Such restrictions may limit potential sales and drive some consumers to other sources, e.g., newsstands, or to simply decide not purchase the service or product.
In addition to security concerns, customers may also have privacy concerns which tend to limit purchases of services and products over the Internet. The customer may not wish to divulge personal information when purchasing a service or a product. The customer may not wish for information to be collected which may be used to target the individual with various forms of unsolicited advertising, offers, and/or requests, e.g., phone calls, E-mails, mailings, sample products, sample offers, requests for contributions, etc.
Based upon the above discussions it should be appreciated that there is a need for new methods and apparatus that allow consumers without credit cards and/or established lines of credit to purchase services and goods over the Internet. In addition, new methods and apparatus that allow a consumer to purchase services and goods over the Internet without having to divulge financial and/or personal information would be beneficial for the consumer.
New methods and apparatus that increase the consumer's confidence in terms of an individual's security and privacy regarding Internet purchases would also be beneficial for service providers and sellers. This could be particularly advantageous for Internet sites offering inexpensive individual purchases, e.g., the purchase an Internet copy of a magazine or newspaper, the purchase of an individual report such as a stock analysis report or a vehicle's title history report, the purchase of downloading a music file, etc.
In the field of telephone service, providers have offered telephone calling cards for voice calls, offering consumers with an alternative to standard long-distance contracts. The telephone calling cards allow a caller to pre-pay for a fixed amount of phone service without the need for a credit card, credit rating, or long-term contact. These voice calling cards are currently sold in many convenience stores, gas stations, etc. In the retail industry, many individual retailers, have sold “gift cards” allowing an individual to pre-pay for a fixed amount of a retailer's goods. In some cases, e.g., with “mall gift cards” these retail gift cards may be accepted as payment by multiple retailers. Telephone service cards and “gift cards” are beneficial for the service providers and retailers because they have secured and locked-in pre-payment for their goods and services. In addition, it is likely that a percentage of these cards will be lost or misplaced prior to depletion of their full pre-paid amount. Since, many of these cards are purchased with cash, such consumer losses may represent profit to the service provider or retailer.
Based upon the above discussions, it should be appreciated that there is a need for variations of the calling card or gift card in the field of Internet purchases of goods and services. Any gift type card, is a very liquid asset, and may be targeted for fraud or theft; therefore, it should be appreciated that there is a need for novel security methods and apparatus to safeguard such a card.